The state government of Karnataka, India, has partnered with the Singapore firm LNG Alliance to build an LNG import terminal in the city of Mangalore.

The New Mangalore Port Trust (NMPT) port authority is also associated with the initiative.

The LNG import and regasification terminal will have an initial capacity of four million tonnes per annum (Mtpa). The capacity can later be expanded to hold up to 8Mtpa to meet the anticipated demand surge over the next 20 years.

It will also have provisions for an LNG bunkering facility and LNG virtual pipelines.

According to the LNG Alliance, the project would be first dedicated LNG bunkering facility in India, offering fuelling services to ships visiting the NMPT port.

The proposed terminal will have ISO LNG containerisation and LNG truck loading facilities to serve the transportation and industrial sectors.

The company plans to invest approximately $290m over the next three years to develop, construct, and operate a floating storage and regasification unit (FSRU), and manage the LNG supply.

LNG Alliance, Singapore CEO Dr Muthu Chezhian said: “We see this as an important step to meet India’s cleaner energy goals of phasing down coal fired powerplants and transitioning to an emission-free economy using LNG as a bridging fuel.

“As part of this agreement, LNG Alliance will develop a tolling fee based floating LNG import terminal, within the maritime concession area of the NMPT. This terminal will also be open for third party access and will provide the most competitive tolling rates in India, based on the LNG sourced from our supply partners.”

Karnataka Industries commissioner Gunjan Krishna said: “The proposed LNG terminal at NMPT will accelerate industrial growth, create job opportunities across the city gas distribution (CGD) networks, and will provide reliable energy security to Karnataka.”

The Mangalore V liquids storage terminal is also located in Karnataka and stores chemicals and petroleum products.